Minefinders Corporation LTD. (MFN)

[Pro-Life]

Gold and silver both underpriced - Chapman

http://www.mineweb.com/mineweb/view/mineweb/en/page60?oid=111325&sn=Detail&pid=60

TGR: But for people who want exposure to gold and silver through equities, what do you think investors should do?

BC: Well, I recommend four stocks, Agnico-Eagle Mines Ltd. (NYSE:AEM; TSX:AEM), Goldcorp Inc. (NYSE:GG; TSX:G), Silver Standard Resources Inc. (TSX:SSO; NASDAQ:SSRI) and Minefinders Corporation (TSX:MFL; NYSE:MFN). That's it. If people want to speculate, that's fine.

TGR: But what do you like about Agnico-Eagle?

BC: First of all, I know the company quite well. I've known the president of the company, Sean Boyd, for about 18 years. I consider him a good friend.

The subscribers to my publication own a lot of this stock; same thing for Goldcorp. These are fine companies with excellent management. The same is true for Silver Standard, which is more in the silver vein. Minefinders is a smaller company producing gold and silver.

TGR: Yes, much smaller.

BC: But I've known Bob Quartermain, who just left Silver Standard, for maybe 25 years. I've known Mark Bailey at Minefinders probably for about 18 years. I don't know the present management of Goldcorp, but I did know Robert McEwen, the founder and former Chairman and CEO, very well. I don't speak to him often, but the structure of the company is there and it's terrific.

TGR: In terms of a company like Minefinders, do you like it because it is producing both gold and silver?

BC: This group illustrates one of the things that's important in these mining companies. The only one out of that group that has a large float is Goldcorp, and there's a good reason for that. But I look for companies that have small share floats because there's more leverage in them. AEM only has 157 million shares outstanding and for what they've got that's astronomically low. With Silver Standard, the figure is about 78 million and it's about 65 million at Minefinders. It shows that the management really did a fantastic job developing the company by not watering it down with lots of equity.

TGR: What are some catalysts for these companies to grow?

BC: I think the bigger companies, Agnico-Eagle and Goldcorp, will buy other juniors that are coming along. It's easier for them to do that.

Silver Standard has been selling some properties to fund other acquisitions.

Minefinders continues to develop new properties. They have one called La Bolsa in Mexico near the border with Arizona that they're developing right now. And they just found a good mineralized extension on their producing Dolores mine in Mexico.